Ansoff’s Matrix, pain and gain Growth strategies and adaptive learning among small food producers

Introduction This paper arises from a programme of research among food sector SMEs in the North West of England. The research project included both qualitative and qualitative phases and its primary focus was on the growth and development needs of the sample firms. The first part of the title derives from the focus on growth and, more specifically, strategies for growth relative to the four quadrants of Ansoff ’s matrix (Ansoff, 1965): market penetration, market development, product development and diversification (Figure 1). In the analysis, we used this framework to categorise growth strategies and then attempted to relate them to other variables such as growth history and expectations. The second part of the title is a reference to the inter-relationship between the “personal” and the “business”, in that all of the sample were owner-managed businesses. It is well understood that owner-management has significant implications at the qualitative level (Bolton, 1971) and that many aspects of the business, including objectives and strategy are closely related to the personal characteristics and goals of the owner-manager. (Carson et al., 1995). As a specific focus, we wanted to explore the usefulness of the Greiner lifecycle model (Greiner, 1972) in interpreting the relationship between personal and business experience and learning in a small firm. Greiner’s model depicts growth as occurring through phases of relatively stable expansion interspersed with periods of “crisis” which may result in successful adaptation and learning, facilitating a further phase of growth (Figure 2). At a broader level, we have set out to refine our understanding of the complex relationship between the owner-manager and his or her business, in terms of such factors as growth, horizons, aspirations, limitations and learning.